good morning, it is 11:00 a.m. "squawk alley" is live. ♪ ♪ good morning welcome to "squawk alley." with me, david favor, courtney reagan we are going to get to south korea in a few minutes first to the news. prices signaling inflationary pressures are rising and raising concerns the fed will hike rates at faster pace than otherwise

planned for by investors let's bring in david rosenberg, and scott ren from wells fargo you got me david, let me start with you give me your reaction. dac david, give me reaction to this morning's report >> right can you hear me okay >> i can hear you, there was somebody else in my ear as well. >> somebody ordering pizza, i don't know >> may have been >> look, i think that it could be a stretch, inflation, we have a situation everybody believed we would get a first big quarter because of the tax cuts and income gains we're going to see, without realizing a good chunk of income gains are going to be siphoned into the gas tank, what the retail sales member told

you. so much of the fourth quarter premised on consumer credit binge. the fed report highlighted that yesterday. bit of a credit hangover and relentless increase in gasoline prices attracting the retail picture inflation number i think was easy to call in my opinion, don't know why everybody thought we would get streams of.2 to perpetuity the dollar is down 13% we have come off -- 40% of cpi is good. what made the report interesting is that the core goods cpi, stuff that you can see, touch, feel, not services, that it was core goods up .4%. haven't seen that in five or six years. my sense is when you look at the

low base of facts from last year, i think serious risk before the end of the year we're going to be close to or above 3% of cpi i think risk is we will see core inflation drift higher next few months >> scott, what's the main take awayfor investors who are perhaps rattled by dramatic stock moves the past couple weeks, now we have data that's showing that there's perhaps something behind being concerned about things not just continuing along the track they have now. >> i think i would argue that since last year, the market, second half last year, the market is laser focused on wages. thought we would see 2.9 or 3.0 print in average hourly earnings october, november, december, something like that. instead it came in january you could see the trigger that that caused. the cpi number this morning, hey, the feds watch core p

drrkdrrk c, our number this year 2.4 these economic reports that come out kickly unemployment report with average hourly earnings, the market is hyper sensitive to anything that's good, and certainly anything that's inflation or wage related. for us, better in general for clients we deal with and retail investors, they're underinvested in stocks and have a lot of cash this is a trading technical market you can watch this morning, 100 day moving average is all about this morning we held, now we're higher. the 50 day, 100 day, 125, 200, all these have been very important points as the markets held in. i think they'll continue to be we have been telling our clients you're underinvested in stocks sometimes the fundamentals detract from prices, detach

themselves that time is now when the market pulls back, we have encouraged them over the past year, have a plan, be ready to step in, don't think about doing things when the market is down you need to pull the trigger when the market is down. there's been opportunities this last week, the market is still volatile still time to put cash to work we're not expecting a great year in stocks, maybe 8, 10% total return, but for these clients that are underinvested, they need to take advantage of pull backs. sure, you want them to look long term, they need to put money to work and look at technical levels and be nimble on their feet that's what we are encouraging them to do. >> the dow turned negative if you encourage clients to put money to work, where exactly should they be investing >> for us, this is prior to the tax code change and it is the same thing now we like industrials, financials,

we like consumer discretionary sector, we like health care. we want them leaning assertively. we think the tax code change length en lengthened that a couple years we don't want them hiding in staples and utilities. we're also under way with energy as well. don't want them getting too defensive. there's time for that on the horizon. don't see it now, industrials, consumer discretionary, financials, health care. that's where we want them to be. that's where they need to be looking for opportunities as markets pull back. >> you mention the word stagflation. do you think we'll get that as consumption flows? >> the matter is made worse by the fact that we are seeing the return of some inflation who does inflation benefit,

debtors. 3% decline in retail sales in nominal terms, because of inflation made negative .8 i would say this much. the fed funds rate now is sitting at 1 and three-eighths percent. what are we doing at this stage of the cycle, 4.1 unemployment, stock market and assets doing what they have been doing, nine years into a cycle why is the fed fund rate negative you take the lowest inflation measure and that's negative. we have never had such overt monetary policy, not counting the $4 trillion balance sheet, never seen such reckless policy at this stage of the cycle what is the fund state doing negative in real terms

the terminal funds rate consistent with price stability is 2.75%, that's where we're heading to i don't think the fed is skipping every other meeting, i think they're going to go a lot further. even if fundamentals are great for the stock market, what's not great for the stock market is liquidity, and that's for risk assets that's the challenge for 2018. >> scott, wondering your take, if we are in a somewhat inflationary environment, what's the impact on tech, players like google, facebook that rely on advertising and players like apple and netflix that don't >> tech tends to be sensitive to interest rates we would argue fed rate hike cycle is generally resulting in multiple contraction technology is sensitive to

higher rates we think the fed, they may hike rates two or three times, the market is more concerned they'll hike four or more. that's a problem for the market. that's certainly a head wind going forward. technology and interest rates, generally there's negative core relation there >> all right thank you, david and scott carl is at the winter olympics in pyeongchang, south korea. >> john, it has been an eventful day of competition again, and eventful because of lack of competition because of the wind once again this time, we have gusts up to 50 miles per hour, temporarily forced closure of olympic park where we are, knocked over a bunch of tents and signs officials urged people to go indoors for awhile here's a shot of what it was like on the mountain top, forced postponement of three or four

alpine ski races michaela shiffrin had several delays getting closer and closer to the start debate it is important we have a fair race for all of the athletes, today's conditions wouldn't be fair she will have back to back events she had five instances of world cup with wins back to back may not be a big deal. it is "squawk alley. we wanted to talk tech samsung has enormous facility in olympic park showing off vr technology >> this translates what my hands are doing into thegoggle

>> this is pretty good >> lot more detail some dizziness and nausea, but they're making strides >> snowboarding is an olympic sport. i am not sure the ioc envisioned something like this.

>> guys, they've done a lot of work on that john, i know you tried this in other settings before. i mean, it is pretty realistic the moon stuff, i was on the lunar surface. you weren't able to see it, i was on the lunar surface following a rover, had to make it to the station. the dizziness is still there, john not sure how they resolve that over time. maybe a younger generation growing up with technology isn't effected by it long term, but it is still jarring, your brain is trying to tell you this is not real. >> i never actually snowboarded. pretty sure shaun white wasn't holding a rail >> i'm sick just watching it,

honestly, getting nauseous what you went through >> everything for the show, guys >> anything. >> somewhere on the inter web, someone said put normal people in the events to get an idea how hard it is maybe virtual reality of a normal person attempting snowboarding is good enough to realize how talented these athletes really are. >> meanwhile, samsung store is enormous no surprise, galaxy, notes, as far as the eye can see they have special custom phone they've given to the athletes so they can watch the games streaming. samsung trying to get their money money's worth as global sponsor. >> makes sense thanks so much great stuff. very interesting thanks so much. when we come back, content wars are heating up. netflix getting ryan murphy from

fox and the deal that could make history for its price tag. more ahead "squawk alley" back after this the dow is just about flat at this point in session. (barry murrey) when you have a really traumatic injury, we have a short amount of time to get our patient to the hospital with good results. we call that the golden hour. evaluating patients remotely is where i think we have a potential to make a difference. (barry murrey) we would save a lot of lives if we could bring the doctor to the patient. verizon is racing to build the first and most powerful 5g network that will enable things like precision robotic surgery from thousands of miles away. as we get faster wireless connections, it'll be possible to be able to operate on a patient in a way that was just not possible before. when i move my hand, the robot on the other side will mimic the movement, with almost no delay. who knew a scalpel could work thousands of miles away?

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a dramatic incident at nsa headquarters in maryland after 7:00, weapons discharged

as a vehicle approached the security gate at the headquarters entrance. officials are saying no known link to terrorism in the incident officials say it happened after 7:00 a.m. at the national security agency. they say weapons were discharged the incident is under investigation at the time. several individuals were transported to area hospitals but are saying that preliminary reports don't say injuries attributable to the gunfire. we saw some video coming in from helicopter journalists overhead, capturing images of a vehicle with what appeared to be two bullet holes in the windshield, and individual sitting on the curb next to the vehicle, appeared to be detained by security officials the fbi has taken over the lead of the investigation, not clear what happened here, who the individual was, how many people were in the car. i asked an official whether bullet holes were made by bullets fired from inside the car towards the security gate or from security gate to the car. they're not providing answers to

the questions just yet we are expecting a briefing from fbi officials between 12:30 and 1:00 eastern time at nsa might get more information on this bizarre, scary incident at headquarters after 7:00 a.m. this morning >> i'm sure we will be coming to you for details as you get them. thank you. netflix, higher on reports it brokered a $300 million deal with producer ryan murphy, the name behind shows like "glee" and "american crime story. a blow to 21st century fox, he is currently signed with them until july joining us, mark mahaney mark, you've got an outperform on stock, up 3.5% plus this morning on reports that it is paying possibly as much as $300 million not for content exactly

but for talent that produces content. why? >> i think two things. one, they're showing they can build out a hedge against a loss of disney content that's coming in about a year and a half, two years. the second one is just a reminder of the power of the netflix model. so for every 1 million subs they add, they have about 120 million in revenue to spend on content we have them adding 20 million new subscribers this year, almost $2.5 billion of incremental revenue to apply to content. you put this deal in context of that, you realize this company has more paying subs they can essentially outbid just about anybody in terms of content and flexing muscles and getting top notch content. the power of the flywheel. more subs, more revenue, and using it to their advantage for deeper richer content base than anyone else can match. >> michael, at a certain point

though does the price tag become an issue apple has money it could be paying for content, say they're going to spend at least a billion dollars, seems like small change compared to 8 billion that netflix is spending do we know enough to know as investors that netflix will get its money's worth? >> i think netflix has done a better job in recent years of turning off content that isn't working well we have seen them cancel shows in the recent past and just to build on what mark said, the key virtue to netflix business model is they have married the subscriber business to the content business because of that, they have a lot of resources to build out what will be the world's largest content library over time. and importantly they've done a good job of selecting content and building content that can travel overseas. big part of the reason the stock is a strong performer is the

international subscriber growth, and big part of that story is the content that they're producing in the u.s. is also popular overseas >> mark, the numbers are staggering, hearing you go over them we are talking $8 billion expected to be spent this year i know you don't cover the traditional media companies that i know fairly well, but you have to believe that netflix will squeeze them to a certain extent they don't have the ability to spend this kind of money for production teams i wonder if they're going to continue to sort of seem to me pressure old media competitors do you agree >> david, i do agree i think about two points by the way, 8 billion is a p and l number cash spend that netflix will put out for content is closer to 12 billion. second thing, this is almost like walmart of media, and its suppliers. as it gets bigger and bigger, gains more leverage. there was a tipping point that

netflix did everything it could to get content a few years ago, all of a sudden reached a point of scale they could select and figure out the content better than most, they know exactly how much netflix content you watched so they put a better price tag on each viewing minute with the scale that they have and maybe buying expertise they developed over time, they can buy smartly and in size. creates a powerful combination for the company. one of top three picks in the space because of that. >> amazon obviously competes in a number of different verticals, video is one of them they create their own content. did they miss out on ryan murphy or shonda rhimes, she went to netflix as well. >> goes at an interesting point which is that netflix has a really good reputation in hollywood for giving producers creative freedom, for having generous production budgets. we have seen press in the recent past that amazon wasn't

necessarily doing all those things, and was having more of a hard time building relationships with key hollywood insiders. yes, with shonda rhimes and the deal with murphy, i think what you're seeing is producers really like working with netflix because they know they'll be able to be true to their art that's a key thing that attracts netflix in amazon and push into media, i would say it is still early there. other parts of amazon prime bundle are probably the more powerful parts, the fast free shipping and low prices, some of the other things you can do with amazon prime like ordering groceries. i think the media part and bundling content, music, films into the prime bundle, probably some of the least important elements of that bundle. i don't think amazon is going to go away here rn, i think they'l keep pushing, trying to build out. so far they're not doing as well

as netflix. >> safe bet jeff bezos is not going away mark, michael, thanks. interesting space to watch still ahead. he has the president's ear when it comes to economic policy. larry kudlow is with us along with former obama and clinton kmik advis economic adviser gene sperling all in the green, especially with the moves the last week o , w 40.r y, trades are now just $4.95. we cut the price of trades to give investors even more value. and at $4.95, you can trade with a clear advantage. fidelity, where smarter investors will always be.

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seema mody has the european clothes. >> european stocks rebound from tuesday's session, helped by data shows eurozone fourth quarter gdp was up

0.6%, up 2.7 year over year. in earlier trade, inflation fears took center stage. at one point stocks erased gains, in reaction to stronger than expected jump in u.s. consumer prices last month in german through europe, markets shrugged off the news and regained momentum. yield on german ten year bond spiked on the u.s. inflation report, since has pulled back from highs 0.75%. the euro, interesting story, rebounded against the dollar after falling in negative territory. tomorrow, we get u.s. producer prices it will be interesting to see how european markets respond, given how interconnected markets have been as of late stock stories, credit suisse on guidance overshadowing third quarter annual loss, bank in the midst of three year overhaul says it is off to a good start to the year, double digit gains in global markets and asia

pacific trading businesses as activity levels rose on market volatility stock up 4%. retail hitting pain. it is a challenging 2018 with mark downs and weaker same store sales, impacting results in the early part of the year h and m expects to get a boost from online sales and new brands still, stock down 5% today down about 50% in the past one year guys, back to you. >> thank you when we come back, we're life at the olympics where carl asked the athletes to name their favorite ceos. first, carl has more on what's going on in south korea. >> if swimming and track are stars of the summer games, for winter, this is likely it, figure skating watching this as the athletes compete in winter games. coverage continues in a moment

hello, everyone. i am sue herera. here's your cnbc update. bore is johnson says brexit doesn't mean return to the 1950s and eating spam and liver. he called for a global future for the country. >> a liberal looking global

future for united kingdom. >> big whose and luke wilson involved in a crash. the ferrari and bmw collided head on. the driver of the ferrari was killed, haas hospitalized with nonlife-threatening injuries. an unhappy customer suing ll bean over new return policy, claiming the company broke a vow to customers last week, the retailer said they were imposing a one year limit for most returns because it said too many people were abusing the unlimited return policy that's the news update back to "squawk alley. courtney, back to you. >> thanks, sue always thought it was a little too generous can't return shoes you had for ten years. >> some people were. >> i know. all right. thank you so much. appreciate it.

let's talk about early losses despite fears of legislation. gene sperling joining us and larry kudlow, senior contributor. got a preview of larry joining us earlier larry, i'll start with you because you're sitting with us onset. we saw the inflation number inch up today, saw that wage inflation number and jobs report that spooked markets didn't seem so scared today. forgive me, why aren't we more scared about the inflation indicator? >> more people working successfully and getting paid morris gre morris -- more is great. today, i thought it was all energy and gasoline. we have big spurt in prices, now they're coming back down the dollar was falling, now it is stabilizing year on 1.8 core cpi, probably

translate to 1.5 deflator. >> gas prices are high does that mean no chance to add federal gas tax if we're already creeping up? >> my take is don't do it federally. if states and localities want to, i wish they wouldn't, that's up to them reagan called it a user fee for highways and bridges had a point. i am not a big fan of gasoline tax, but i wouldn't do it for the whole nation each state has a story let them do it federal government doesn't have to >> republicans are putting a lot on the states, want them to pick up the bill for everything gas tax, infrastructure spending. >> as the founders visualized this many years ago. states are very important. we are the united states of america, not the big federal government of america, we are the states of america. yes, they should bear more responsibility. >> gene, let's bring you into the conversation

there have been those noting deficits that we're generating, and starting to get concerned, saying we are adding fuel to a fire already going pretty darn hot and worry about that, not to mention generating deficits at percent of gdp we haven't seen in some time are you amongst that group >> what worries me is the degree that fiscal policies we have seen from trump administration are going to crowd out exactly the type of investments and commitments we need to workers, to long term growth, long term productivity consider you had democrats and republicans willing to bring down corporate rates into the 20s, use one time money coming back for major infrastructure fund it would have been fiscally responsible. would have given a strong boost to infrastructure. instead, what you saw they said let's borrow $1.5 trillion that the american people have to

payback, have that deficit go up we'll give most of that money to large companies and well off people that don't need that, and then come back with this marie antoinette budget and infrastructure plan at best advertising, at worst, fraudulent there's no money there at all, maybe a few billion a year, and it is supposed to have huge leveraging impact. i think it is a darn shame that really is what worries me, which is that they have for no reason created a huge deficit. i think it is going to be, could do crowding out on the private side, definitely going to crowd out, we're already seeing the type of important public investments like infrastructure that our country needs. >> gene, with respect, we have known each other a long time >> we have. >> obama was a champion of budget deficit and debt. >> that is just -- larry, you're

too smart to say something like that >> look, let me finish looking at the obama budgets, looking at the trump budgets, budgets are statements of policy that's what they are you may not get them, may not get the policies trump is going after entitlements, medicaid, medicare, small entitlements, work type issues i don't know if he will get it i think he is on the right track in terms of policy discussion. in terms of debt, obama took it as shared gdp, 52% to 77%. >> larry. >> mr. trump is going much lower route. he starts to pay for tax cuts, we have to borrow first couple of years, no question. about 4% of gdp. their budget has it going down to 1.5% of gdp we will probably disagree about economic growth assumptions, but i think we can get 3% growth, and i think business tax cuts are going to benefit working folks and wage earners most, add to productivity, we get the best

investment boom in 20 years plus. >> so much misinformation from my good friend larry let me try to respond. one, barack obama you may have remembered inherited the worst recession since the great depression deficits as high as 10% of gdp when he left, down to 3% he cut that deficit from 10% to 3% and he didn't do it by doing things that could border on being cruel to working americans struggling to get by then you have president trump comes in, benefits enormously from inheriting this stronger and improving economy that president obama left them, then he borrows $1.5 trillion and larry, there's nobody really who believes you're suddenly going to because of the tax cut have forever, not just a year or two, but forever have 3% gdp. in fact, the joint committee on

taxation, one neutral arbitor thinks it is one-tenth of gdp. there are no credible independent people that do not believe donald trump is sending debt up higher my argument is not even for good reason there's no reason corporate tax reform couldn't have been revenue or deficit neutral as president bush, as former house ways and means chair and president obama all proposed. >> i think business tax cuts will be revenue neutral. in fact, i am even more optimistic about economic growth potential. i appreciate that you and i disagree, but respectfully, that's our view. you're right president obama inherited bad recession. i agree with that. you chose a different path than the one trump people are choosing you were spending and regulating and taxing and obamacare was a huge new entitlement. president trump is trying to unwind that. he is deregulating

he is dropping particularly business tax rates which again i will say helps the working class and wage earners the most. lot of evidence to support that. i know there's disagreement, gene, but there's evidence to support that we will promulgate a better economic growth rate we have a difference of philosophy, i get that but look, the trump numbers -- >> you don't go to 18 or 19. i am wondering what will be the number in terms of percent of gdp. >> these are the omb >> where are we for '18? >> 4.2%. >> '19 is 4.7? >> the three biggest numbers >> we have a third of the national debt coming, rolling over, we have to refinance at higher rates doesn't that concern you overall? >> on that point if it were me, i would refinance with 50 to 100

year bonds that's a great policy. mnuchin is trying to get it. i think he is right. >> does that concern you overall? once you were a deficit hawk. >> i am a growth hawk. never been a deficit hawk. i am a reagan type guy gene is on the other side. i respect that, i respect you. we have been having this conversation for 20 years. i just want to say that trump's budget as a policy outline, may not get what he wants, i understand that, but i think it is in the right path i think lowering tax rates on business and becoming competitive is dead right. i think it will boost economic growth his deficit numbers, you may not agree with the omb budget, his deficit numbers are far lower than obama deficit numbers gene, in fairness, you predicted 4% growth in early budgets, never got it i think there are policy reasons for that >> gene?

>> first of all, as you know, i supported and worked on a plan to bring down corporate tax rates, so did former president bush we didn't think you needed to borrow $2 trillion from the american people to give an actual net tax cut, give away windfall to the largest corporations and most well off americans. and then what they do is come back and say oh my god, somehow the deficit might be $2 trillion larger, so therefore we have no choice but to do $675 billion in medicaid and medicare cuts, this rather cruel cut to snap for working families, all these things that are completely unnecessary. these are very bad value choices, and i think they're going to be bad for our long term growth. barack obama did inherit a deep financial crisis perhaps you can juice up the economy so you get higher. it was 2.9 in 2014 or 2015

i am rooting for the u.s. economy. but these deficits overall are for no reason. they're going to crowd out things look, we should be talk infrastructure why are we not talking infrastructure >> we are! >> the reason there's not a serious plan is because president trump decided to borrow, and i think it will be over $2 trillion in deficit increase, so that he has to put forward an infrastructure plan which is advertised as 20 billion a year, but when you take out cuts it does to other infrastructure, probably 2 billion a year, and then says oh, that's going to lead to 1.5 trillion it is going to lead to very little that puts people to work, increases productivity of the country. >> limited government, limited spending guy, gene i will defend trump's infrastructure

he doesn't want it to be public works program. he is reforming infrastructure with respect to the time of applications and probably local labor laws 200 billion is not a big number over tenyears. the rest, you may disagree with this policy, but the rest is going to the private sector. >> toll booth america. >> i think they're going to get it done. >> we have, listen, toll roads and private public partnerships are terrific ideas >> middle income people pay for high income taxes. >> i like the optimism, larry. this conversation has more to go we have to wrap it up. you know how it works in tv. >> gene is a good deficit reducer, that's terrific you're a good man, even though we agrdisagree >> appreciate you both being here thanks again. let's get back to carl at the winter olympics in

pyeongchang, south korea. >> hard to follow that, john, we're going to try whenever we come to the games, we do a segment ask the athletes we asked guys and women in pyeongchang about bitcoin, social media, about what they binge watch. now it is time to ask about their favorite ceo or business leader >> i read a couple of bill gates' books >> i like what elon musk does. they patented the electric car engine and released it for everyone to use. good idea in my opinion. >> steve jobs, did incredible. i love apple products. >> steve jobs was great, yep >> my dad. he has his own landscaping

business for 20 years. i look up to him in that aspect. on a larger scale, steve jobs probably >> elon musk comes to mind. >> barack obama, he was pretty poised didn't shoot off the cuff like the current president. >> leader honestly, my mom runs her own immigration company. i respect my mom so much >> cook maybe, apple i don't know his name. >> elon musk especially, i mean, just he's moving everyone towards space and just the progress they made with electric cars and everything, it is one of those things you talk about titan of industry, this is the future of our planet, the species. >> i counted three for musk, three for jobs, one bill gates, one particultim cook, one dad a. we forget ceos we talk about are

global celebrities in their own right, clearly the athletes in pyeongchang have taken notice. what did you guys think? >> surprised we didn't get any bezos. >> that's what i thought where was bezos? good question, right >> or bob iger. >> he needs more super bowl commercials. >> the canadians liked elon musk. >> he is taking us all to space. all right, guys. >> musk and bezos. see who takes us there first as we head to break, major averages going for the first four day win streak since early january about veee a ayith usksgo feel that? that's the beat of global markets, the rhythm of the world. but to us, it's the pace of tomorrow. with ingenuity, technologies, and markets expertise we create the possible. and when you do that, you don't chase

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coming up, the big warning today from one bank. ceo of the trump tax law and what stocks could pay a steep price if he's right. plus, burritos wild. shares surging after the company names a new ceo. is that the key to a turn around and the big call on pete's favorite retailer. it's sending shares sharply higher m we'll debate the call of the day what it means for the stock. see you in about ten >> just in time for lunch and remmi remmington filing for chapter 11 bankruptcy scott has been following that company's challenges and he's at

the hear ng kansas city. >> jon, this is an appeals court hearing about the tentative class action settlement involving remington guns it could happen anytime. these are tough times for the gun industry in general, but specifically for remington also because of as many as seven and a half million firearms that allegedly can can fire without the trigger being pulled >> no fire >> okay, it didn't fire. d go ahead. >> that's our 2010 cnbc adoptry remington under fire, which is still available at cnbc.com in which we investigated that alleged defect, which they deny, but in 2014, to try and get this matter behind it, the company agreed to replace the triggers

on millions of guns and that's what this hearing at the eighth circuit court of appeals was about. because some say the settlement doesn't go far enough. that remington down played the risk and it hasn't done enough to notify people that they can get their guns fixed the judges heard that. expressed skepticism and whether gun owners would return. the plaintiff's attorneys are supportive of the settlement of course they stand to collect $12.5 million in attorney's fees now the big wild card here is that bankruptcy. it didn't come up in the court hearing and the attorney refused to say whether the company would still stand by its commitment to replace these triggers if the filing has beens we' we'll see what happens with the bankruptcy court a lot will defend on how the filing is written. guys

>> thank you so much awesome job. youdeserve a lot of kudos for followinging that story for these last eight years as we head to break, taking a look at chipotle it's coming up soar iing after the company toppled taco bell's chief to be its new ceo. more straight ahead. two,that was awful. why are you so good at this? had a coach in high school. really helped me up my game. i had a coach. math. ooh.

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quick check of the markets the dow's about flat s&p up a third of a percent.

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welcome back wouldn't know it from looking at the major indices, but big tech is having a big day. amazon is up a percent and a half

nvidia also better than two. >> we talked about netflix earlier. they just signed ryan murphy a good reason for the move as well >> on news they're spending a lot of money and of course we're looking forward to cisco earnings after the bell. got the boeing ceo on tomorrow as well. >> well, it's a good time to toss it to the half. scott wapner at headquarters >> wielcome top trade, high interest why real rise in rates might be just getting started and the big warning today on the economy from one well nen bank boss. what does that mean to your money? with us today, jim, erin, jon and pete at the table. also with us today, our senior economics reporter, steve liesman, pau